ICP Faces Selling Pressure as Emissions Still Outpace Burns

Internet Computer (ICP) is experiencing short-term selling pressure as burns average only around 1,000–3,000 ICP per day, despite occasional spikes up to ~15,000 ICP per day. Meanwhile, new supply from staking rewards and node rewards continues to be issued regularly, keeping ICP in a state of net inflation.

Holder data shows the number of wallets holding ≥1 million ICP has decreased from 77 to 66 wallets (~20%), reflecting distribution activity from some large holders. With a staking yield of about 13% per year, a wallet holding 200,000 ICP can generate ~26,000 ICP per year, equivalent to ~78,000 USD per year at a price of 3 USD, creating an ongoing incentive for periodic profit-taking.

In the long run, increases in burns driven by cycles usage remain a key factor closely watched by the market during the supply-demand rebalancing process for ICP.